On October 23rd, 2014, we updated our
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Over 300 biotech (71 public) companies employing approximately 30,000 individuals
Pharmaceutical products sector is state’s 4th largest exporter - July 2003
Nearly 90 clinical trials underway in Q1 2004
Profile of State Industry Source: Massachusetts Technology Collaborative, 2002 Index of the Massachusetts Innovation Economy, 2003, MassBiotech 2010 report, MBC, 2002; MISER, 2003.
Areas of Biotech Research
Central Nervous System
Transgenic Animals, Fish, and Plants
Geographic Distribution of Massachusetts Biotech Employment in 2001 Worcester Woods Hole Beverly Danvers Wilmington West Bridgewater Wareham Fall River Devens Boxborough Billerica Agawam Ashland Bedford Boston Brighton Cambridge Canton Charlestown Framingham Franklin Hopkinton Lexington Marlborough Maynard Medford Milford Natick Needham Newton Northborough Norwood Rockland Waltham Watertown Wellesley Westborough Woburn Andover Source: Massachusetts Biotechnology Council, BCG Value Science Center Number of employees 1,000 500 100
Life Sciences Cluster Composed of Diverse and Interconnected Segments HEALTH CARE Hospitals Providers Payers HMOs Public health organizations Patients PUBLIC INSTITUTIONS State officials Local officials Quasi-publics Public agencies Community-based organizations EDUCATION Universities Community colleges K-12 schools OTHER SERVICES Law firms Real estate IT firms Accountants Construction Medical devices BIOTECH Human therapeutics Agricultural biotech Marine biotech Environmental biotech Pharmaceuticals Diagnostics Biodevices SPECIALIZED SUPPLIERS Lab/ bio supplies & equip. Platform & tools companies Contract manufacturing Bioinformatics CROs BASIC RESEARCH Academic research labs Academic medical centers FUNDING ENTITIES Government grants Venture capital firms Financial institutions
Competitive Advantage Massachusetts Companies Cite Universities and Talent as Primary Sources Source: MBC, BCG Biotech 2010 project interviews Proximity to major universities Availability of scientists Strength of partner industries Proximity to other biotech companies Quality of life Availability of skilled technicians Availability of spouse jobs Leg./ reg. environment Cost of labor Other Personal Quality supplier base Average allocation of 100 points across potential sources of Massachusetts advantage “ We started here because our founders come from Massachusetts universities. We stay here because the best people are here.” Weather
Others Agree, MA is the Place to Be
Milken Institute Report: New England is #1US Biotech cluster
Venture Capital: In Q2 2004 MA received most investment of any region according to MoneyTree
The state receives highest NIH dollars per capita. $2.1B in 2004 through 5,386 awards. (CA received $3.0B)
Companies relocate here: Novartis, Merck, Pfizer, AstraZeneca, Amgen, Abbott Laboratories plus many smaller firms
Massachusetts Biotech In-State Capabilities (1) Clinical development structure in state (2) Commercial manufacturing only Note: Sample is 134 human therapeutics companies Source: Massachusetts Biotechnology Council Survey 2002, BCG analysis Commercial Research Development (1) Manufacturing (2) 108 57 8 9 10 7 26 11 15 3 23 2 24 Mass. companies Out-of-state companies with Mass. locations Activity in Massachusetts Activity outside Massachusetts
Opportunity to Create Nearly 100K Jobs in Massachusetts by 2010 Note: 2001 baseline: 30K biotech jobs and ~70K indirect jobs= ~100K total jobs Source: Bio E&Y 2000 Report; MBC 2002 survey; BCG Analysis; Economic Model Massachusetts share of U.S. biotech jobs 1991-2010 Mass. share of biotech jobs (%)
Mass. share erosion continues
Mass. strengthens its number 2 position
Mass. closes gap with Calif.
1 2 3 ~150K new jobs ~90K new jobs ~20K new jobs
The Threats to MA Success
Macroeconomic limits: Increased rationing worldwide through queues, adoption delays and price controls.
Scientific freedom limits: Stem cell research restrictions. Human gene therapy restrictions. Etc.
Research pipeline gaps: Basic research transition to therapeutic research. Human clinical trial capacity.
The MA Pipeline is Springing Leaks Basic Research Therapeutic Candidate Lead Optimization Pre-Clinical Regulatory Review Regulatory Approval Biomanufacturing Clinical Trials Commercial Tech Transfer/ Company Formation VC funding moved downstream NIH funding has not NC & Foreign locations MA Med Centers run relatively few CROs mostly elsewhere Partner out Clinical Trials Clinical Adoption/ Marketing
Should We Care about the Leaks? Basic Research Therapeutic Candidate Lead Optimization Pre-Clinical Regulatory Review Regulatory Approval Biomanufacturing Clinical Trials Commercial Tech Transfer/ Company Formation Future product pipeline at risk Construction & Manufacturing jobs Spread wealth beyond 495 belt Help hospitals remain solvent Improve patient access to best therapies Value to being close to the clinic Substantial service sector jobs Commercial jobs Control economic destiny Clinical Adoption/ Marketing Clinical Trials
How Might We Patch the Pipe? Basic Research Therapeutic Candidate Lead Optimization Pre-Clinical Regulatory Review Regulatory Approval Biomanufacturing Clinical Trials Commercial Tech Transfer/ Company Formation Therapy focused research: Shared animal model facility Translational medicine Disease centric institutes $3B CA Stem Cell initiative $1B IL Stem Cell proposal $1B FL biotech VC funding $0.8B WI biotech initiative $0.3B FL Scripps incentive $0.05B MA Tech fund Expedited permitting (passed) Shared mfg. facility for trials, teaching, dev. Smart incentives for full mfg sites. Leverage community & western centers Innovative IRB & patient monitoring Faculty & administration focus Become more acquisitive Clinical Adoption/ Marketing Clinical Trials
Our History Shows the Risk
Henry Ford moved from Cambridge (640 Memorial Drive) to Detroit
Shoes and Textiles moved South, then overseas
Lyndon Johnson moved the NASA Space Center from Kendall Square to Houston
Minicomputers & workstations were out competed by California and Texas
Time will tell on IT off-shoring and Telecomm
The Benefits are Large
Up to 100K, even 150K new jobs
Move the economic, not just research, center of Biotech to MA
Provide MA residents with the best access to the best medicines in the world
Add over $250M in state & local tax revenue (Milken Institute assuming doubling of current job base)
Success Demands Collaboration HEALTH CARE PUBLIC INSTITUTIONS EDUCATION OTHER SERVICES BIOTECH SPECIALIZED SUPPLIERS BASIC RESEARCH FUNDING ENTITIES
Mark Trusheim Board Member & Treasurer Massachusetts Biotechnology Council Biotech’s Downstream Economic Impact for Massachusetts